Kotak Securities' Amol Athawale Recommends Short-Term Investment Opportunities in SBI Cards, DLF, and Other Stocks

Indian Stock Market Under Pressure Following Profit Booking and US-Iran Tension

The Indian stock market benchmarks, the Sensex and the Nifty 50, ended with heavy losses on Wednesday, April 22, due to profit booking at elevated levels. The Nifty 50 plummeted 199 points, or 0.81%, to settle at 24,378.10 on Wednesday. Among sectors, the Nifty IT index dropped nearly 4%.

Market analysts expect benchmark indices to remain under pressure on Thursday due to the renewed escalation of tension between the US and Iran, despite a ceasefire between the two nations. According to Amol Athawale, Vice President - Technical Research at Kotak Securities, as long as the market remains below 24,500, the weak sentiment is expected to persist. On the downside, it may fall to 24,300, and further weakness could continue, potentially pulling the index down to 24,200. On the upside, above 24,500, it could revisit the 24,600–24,675 range.

Short-Term Stock Picks

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Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:

Athawale highlighted that SBI Cards shares have reversed from their important demand zone, forming a rounding bottom chart pattern on the daily scale. The stock is in a steady upward move, and technical indicators like RSI are indicating a further uptrend from current levels. As long as the stock is trading above ₹660, the bullish texture is likely to continue, and above which, the stock could move up to ₹730.

Pidilite Industries shares have given a breakout from an inverse head and shoulder chart pattern on the daily charts. Sustaining above the breakout of the range indicates a new leg of the uptrend from current levels. For positional traders, ₹1,370 would be the decisive level. Trading above the same uptrend formation will continue till ₹1,510. However, if it closes below ₹1,370, traders may prefer to exit from trading long positions.

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On the daily and weekly scale, DLF shares are in a rising channel chart formation with higher high and higher low series patterns. The stock witnessed a steady recovery from the lower levels. Additionally, the technical indicator RSI is also indicating a further uptrend from current levels, indicating the bullish momentum will be sustained in the near future. For the next few trading sessions, ₹590 could be the trend decider level for the bulls. If it holds above the same, we can expect further uptrend towards ₹650.